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The now-bankrupt exchange FTX has reportedly offloaded nearly $1 billion of shares in <a href="https://coingape.com/bitcoin-etf-grayscales-gbtc-records-580-mln-net-outflow-on-day-5/" rel="noopener noreferrer nofollow">Grayscale’s Bitcoin Trust (GBTC)</a>. This massive sell-off revealed through confidential data and anonymous sources, is part of FTX’s ongoing bankruptcy process. The exchange aimed to liquidate its holdings to aid in reimbursing its creditors, having disposed of all 22 million shares it held in the GBTC fund.
<h2 id="grayscale-s-market-influence-and-ftx-s-liquidation-strategy">Grayscale’s Market Influence and FTX’s Liquidation Strategy</h2>
Grayscale’s shift to a spot bitcoin ETF has placed it at the forefront of the market. With $2.8 billion in outflows since its conversion, Grayscale has dominated trading volumes in the crypto-based ETFs sector.&nbsp;
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, emphasized this substantial asset shrinkage. The move by <a href="https://coingape.com/breaking-ftx-launches-claim-portal-for-creditors/" rel="noopener noreferrer nofollow">FTX </a>to divest its Grayscale investments is a critical part of managing its bankruptcy estate, offering a potential financial lifeline to its numerous creditors.
<h2 id="rising-trend-in-cryptocurrency-investment">Rising Trend in Cryptocurrency Investment</h2>
The cryptocurrency market is witnessing a significant shift, with Bitcoin ETFs rapidly gaining popularity. In a six-day trading period, these ETFs, which include major players like Fidelity’s FBTC and<a href="https://coingape.com/bitcoin-etf-sec-seeks-public-feedback-on-blackrocks-options-trading/" rel="noopener noreferrer nofollow"> BlackRock’s iShares</a> Bitcoin Trust (IBIT), have collectively amassed an impressive 95,000 BTC, with their assets under management approaching the $4 billion mark.&nbsp;
This trend underscores a growing investor interest in cryptocurrency ETFs, contrasting starkly with Bitcoin’s price decline and the recent sell-off in the Grayscale fund.
<h2 id="bitcoin-s-dips-below-40k">Bitcoin’s Dips Below $40k</h2>
<a href="https://coingape.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin’s price </a>has recently experienced a downturn, dropping below the $40,000 mark for the first time since early December. This decrease, in addition, is part of a larger trend in the digital currency market, which has generally been on a downward trajectory following a significant bull run in 2023. The initial excitement surrounding the launch of <a href="https://coingape.com/heres-why-bitcoin-btc-price-is-falling-after-spot-bitcoin-etfs-cryptoquant/" rel="noopener noreferrer nofollow">spot Bitcoin ETFs</a> has subsided, with the market adjusting to the influx of new investment options and the evolving landscape of cryptocurrency investments.
Consequently, investors and market analysts closely monitor these developments, anticipating further changes as new investment products emerge and the cryptocurrency landscape continues evolving.
Read Also: <a rel="noopener noreferrer nofollow" href="https://t.me/coingape/28902">Ripple CEO Stirs Community Rage Over DOGE-Zimbabwean Dollar Analogy</a>
The post <a href="https://coingape.com/ftxs-1b-grayscale-etf-sale-linked-to-major-outflows-report/" rel="noopener noreferrer nofollow">FTX’s $1B Grayscale ETF Sale Linked to Major Outflows: Report</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

FTX’s $1B Grayscale ETF Sale Linked to Major Outflows: Report

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